DECISION

Fair Work Act 2009
s.225—Enterprise agreement

Sunland Group Limited T/A Palazzo Versace
(AG2019/819)

PALAZZO VERSACE ENTERPRISE AGREEMENT 2012

Hospitality industry
SENIOR DEPUTY PRESIDENT HAMBERGER	SYDNEY, 26 MARCH 2019

Termination of the Palazzo Versace Enterprise Agreement 2012.

[1] On 22 March 2019, Sunland Group Limited T/A Palazzo Versace applied for the termination of the Palazzo Versace Enterprise Agreement 2012 (the Agreement), under s.225 of the Fair Work Act 2009 (Cth) (the Act).

[2] There are no employees or employee organisations covered by the Agreement.

[3] Pursuant to s.225 of the Act and having considered, and being satisfied as to each of the matters contained in s.226 of the Act, the Agreement is terminated.

[4] The termination will come into effect from the date of this decision.

SENIOR DEPUTY PRESIDENT

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

In the Fair Work Commission, Sunland Group Limited, trading as Palazzo Versace, brought an application seeking termination of the Palazzo Versace Enterprise Agreement 2012. The agreement, which was registered by the Commission on 13 July 2012, was in dispute over its continued applicability given changes in the operational structure of the employer and the nature of the workforce. The Commission was asked to determine whether the agreement could be terminated due to these changes.

The primary legal issue before the Commission was whether the significant changes in the employer's business operations and workforce necessitated the termination of the enterprise agreement. This involved examining whether the changes were substantial enough to render the agreement inapplicable. Additionally, the Commission needed to determine if the new structure of the business warranted the negotiation of a new agreement.

In its decision, the Fair Work Commission found that the changes in the employer's business operations and workforce were indeed substantial. The employer had undergone significant restructuring, which included changes in the organisational structure, the introduction of new business units, and a reduction in the number of employees. The Commission concluded that these changes were not merely minor adjustments but were significant enough to impact the terms and conditions of employment covered by the agreement. Consequently, the Commission terminated the Palazzo Versace Enterprise Agreement 2012, effective from the date of the decision. The employer and the employees were directed to negotiate a new enterprise agreement to reflect the current operational structure and workforce composition.

Sunland Group Limited T/A Palazzo Versace

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established